Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Slow Start To US-Free Session, Strong Chinese Services PMI Vs Latest US Covid-19 C

Published 03/07/2020, 09:09
Updated 21/10/2020, 09:15

In a taste of what could be the tone for the rest of the session, things got off to an awfully slow start on a US-free Friday.

Investors’ reticence is understandable. For though the US markets won’t be around to set the pace later this afternoon, news from America certainly is, with the country once against seeing a fresh record number of one-day covid-19 cases. Thursday saw a further 55,220 infections, clearing Wednesday’s high by around 2,500.

Alarmingly for Florida, the state made up almost exactly a fifth of those cases, in a stark example of what happens when you have the laxest lockdown measures imaginable.

The blow of this news was countered somewhat by a very strong Caixin services PMI out of China. At 58.4 the reading easily smashed expectations, suggesting a robust comeback from the superpower.

In Europe, meanwhile, the Spanish services sector returned to growth, surging from 27.9 to 50.2 month-on-month. Italy wasn’t quite as fortunate, missing its 46.9 target; however, an increase from 28.9 to 46.4 is still a huge swing in the right direction.

Yet none of this could quite shake the European indices out of their early inertia. The DAX was unchanged just above 12600, with the CAC falling a handful of points but holding above 5000. The FTSE was also down 10 or so points, leaving the UK index at 6230.

Without the US to guide the way this afternoon, it is going to be interesting to see whether Europe can strike out on its own, or whether it will wait for the return of the market daddy next week.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original Post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.